Revenue / 09.26.19
Madonna's New Concert-Ticket Strategy: Higher Prices, Smaller Venues
Wall Street Journal (09/16/19) Shah, Neil
Madonna's latest tour marks the premiere of a new ticket-pricing model, which charges higher prices for shows in smaller venues. The "Madame X" tour's opening at the Brooklyn Academy of Music's 2,100-seat Howard Gilman Opera House is a far cry from Madison Square Garden, with an average ticket price of $300, according to Live Nation's Arthur Fogel. The hike is chiefly driven by an increase at the higher end, and the show's most expensive non-VIP tickets will go for about $750, excluding fees. "Madonna's going to charge you what the market says those tickets are worth — and then, at the same time, she's keeping her cheap seats," says former Billboard editor Bill Werde. This trend is catching on among other superstar acts, fueled by profits on recorded music being squeezed by piracy, downloads and streaming. The goal is to collect ticket-sales revenue that might otherwise go to scalpers, although costlier tickets can take longer to sell and bar instant sellouts. Multiple small shows can lower stage set-up and take-down costs, which artists often pay for themselves from concert promoter fees — with the additional benefit of padding profit margins. "There's not just one way to do this anymore," Werde notes. "You're starting to see [older stars] doing what they want to do — what makes sense for their lives."
Read the full article from the Wall Street Journal.
Tags: Music , News , Venues , Leadership